ENERGY

Ghana IADC: Okon makes case for technology as catalyst for profitability

&NewLine;<p>Effiong Okon&comma; the Operations Director at Seplat Petroleum Development Company Plc&comma; leading Nigerian independent oil and gas company listed both on the Nigerian and London stock exchanges&comma; has advocated for more  deployment of technology including the right strategy and  administration to optimise mature or old resource wells for sustainable  profits&period; <&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Okon &nbsp&semi;disclosed&NewLine;this to potential investors&comma; industry professionals and other participants during&NewLine;a panel session titled&colon; &OpenCurlyQuote;Established Producing African Countries’ at the IADC&NewLine;Drilling Africa Conference &amp&semi; Exhibition 2020 held in Accra&comma; Ghana between&NewLine;February 18 and 19&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>He &nbsp&semi;said&colon;&NewLine;&OpenCurlyDoubleQuote;With a capable organisation&comma; robust&sol;well-implemented strategy and deployment&NewLine;of latest technologies to optimise production capacity&comma; companies can&NewLine;cost-effectively access and produce the remaining oil and gas&nbsp&semi;in smaller&NewLine;reservoirs&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&OpenCurlyDoubleQuote;In this light&comma; Seplat employs a pro-active and innovative&NewLine;strategy towards optimising asset value and thereby extending economic life of&NewLine;small assets&period;”<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>According to Okon&comma; who is also an executive director in the company&comma; Wells&comma; Reservoirs and Facilities Management &lpar;WRFM&rpar; is key to sweating the assets and arresting production decline while developmental projects are aimed at filling ullage of existing facilities&period; He added&colon; &OpenCurlyDoubleQuote;Technologies deployed targets by-passed oil&comma; attic oil&comma; thin oil rims&comma; improvement in productivity&comma; &lpar;4D seismic&comma; horizontal wells&comma; geosteering&comma; well stimulation&rpar;&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&OpenCurlyDoubleQuote;Gas development of high and depleted pressure reservoirs&NewLine;&lpar;mechanical refrigerant vs Joule-Thompson&rpar;&comma; stripping out NGLs and LPG to&NewLine;maximize product yield and flares out&period;”&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The Seplat ED said the company’s Ovhor and Sapele fields&NewLine;that started production in the &OpenCurlyQuote;70s were still producing after 50 years at over&NewLine;22 million barrels of oil per day &lpar;Mbopd&rpar; and 10Mbopd with several infield&NewLine;drilling opportunities for production growth&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>He said smart investment was required in the late life of&NewLine;these assets with focus on activities that deliver incremental positive Net&NewLine;Present Value&comma; NPV &lpar;low cost wells&comma; commingled production&comma; re-completing older&NewLine;wells&comma; side tracks&comma; infield appraisal&sol;exploration&rpar;&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Participants at the conference&comma; therefore&comma; pointed that&NewLine;the long-established African oil and gas producers are managing two distinct&NewLine;challenges at either end of the production spectrum&colon; increasing complex and&NewLine;expensive new developments&comma; and low value depleted fields under late life&NewLine;investment or disposal&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>It was argued that new production from historical&NewLine;producers was now in smaller reserve pockets&comma; reliant on expensive new&NewLine;technology&comma; or requiring ever deeper offshore water depths<&sol;p>&NewLine;

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